Today the Commerce Department announced that the US goods and services trade deficit for February was $43.6 billion, down 9.5% from the January figure of $48.2 billion. The reduction occurred despite a $1.6 billion increase in the US-China bilateral deficit.
“While one month does not make a trend, a 9.5% decrease our global trade deficit is good news,” said Michael Stumo, CEO of CPA. “China continues to be a problem that needs particular focus. We hope President Trump, in his meeting with China’s president this week, does not continue the past US practice of capitulating on economic issues in return for agreement on foreign policy."
The bad news is that the year to date good and services deficit increased by 3.1% ($2.8B) over the same period last year. The report dives deeper into country by country:
"The February figures show surpluses, in billions of dollars, with Hong Kong ($3.3), South and Central America ($2.0), Singapore ($1.1), Brazil ($0.5), and United Kingdom ($0.2). Deficits were recorded, in billions of dollars, with China ($31.7), European Union ($12.0), Mexico ($6.2), Germany ($5.4), Japan ($4.9), Canada ($2.4), OPEC ($2.2), Italy ($2.1), South Korea ($1.9), India ($1.8), France ($1.3), Saudi Arabia ($1.2), and Taiwan ($1.1)."
“The US needs to focus particularly upon our non-energy goods deficit,” continued Stumo. “Non-energy goods are the primary source of our jobs, innovation and wealth creation… yet we are setting record deficits in this regard."
Source: Westwood Capital LLC, NYC
"President Trump needs to act aggressively on the primary drivers of our deficits. Congress must pass H Cong Res 37 which will set a national goal of balanced trade,” said Stumo.
The Coalition for a Prosperous America is a nonprofit organization representing the interests of 2.7 million households through our agricultural, manufacturing and labor members.
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